New world order heralded by Brics
Bloc shows way as ‘bright spot’ in global economy, says Xi
CHINESE President Xi Jinping said yesterday that emerging market and developing countries were playing an ever greater role in international affairs. Addressing the opening ceremony of the Brics Business Forum in Xiamen, he described Brics co-operation as “a natural choice” made by the bloc: Brazil, Russia, India, China and South Africa.
Xi said the bloc had become a bright spot in the global economy in the past decade. Together, its five countries accounted for 23% of the global economy in 2016 – almost double their share in 2006 – and had contributed to more than half of global growth.
Xi said the past decade had seen the countries make headway in common development, their combined GDP growing 179% while their trade increased 94% and their urban populations expanded 28%.
The bloc has contributed significantly to stabilising the global economy and returning it to growth, and has delivered tangible benefits to more than three billion people, he said.
“Leveraging our respective strengths and converging interests, we have put in place a leaders-driven co-operation framework that covers wide-ranging areas and multiple levels,” Xi said.
The New Development Bank and the Contingent Reserve Arrangement have provided financing support for Brics infrastructure building and sustainable development, contributing to enhanced global economic governance and the building of an international financial safety net, he said.
He also cited recent advances in co-operation on e-commerce, trade and investment facilitation, trade in services, local currency bond issuance, scientific and technological innovation, industrial co-ordination and public-private partnerships.
The leaders of the five Brics countries are meeting at the ninth summit of the bloc in Xiamen, which runs until tomorrow.
An important side event at the summit, the business forum is a platform for business leaders to discuss issues of common concern, build consensus and raise policy suggestions.Xi said the development of emerging markets and developing countries was not intended to “move the cheese of anyone” but to “make the pie of the global economy bigger”.
The Bric grouping was formally established in 2006. In 2010, South Africa joined the group. – Xinhua
TODAY and tomorrow, leaders from the Brics countries will gather in the beautiful Chinese coastal city of Xiamen for the 9th Brics Summit. Together, the five Brics countries account for 26.46% of the world’s land area and 42.58% of its population. As a co-operative mechanism that represents progressive and emerging powers of the international community, Brics has transformed itself through the past 10 years of development from a humble beginning to what is now a powerful force to drive the modernisation of the global governance regime.
Over the past 10 years, the economic aggregate of Brics has increased from 12% to 23% of the world economy. The share of Brics trade in the global total has increased from 11% to 16%, and that of foreign investment from 7% to 12%. Brics countries together contribute to more than half of the world’s economic growth, exceeding the contribution of all developed countries combined. Brics countries account for 13.24% of World Bank voting power and 14.91% of IMF quota shares.
Trade and investment among the Brics has registered substantial growth. For China alone, in the first half of this year, imports from the other four Brics countries grew by 33.6%, and imports from South Africa in particular grew by an impressive 35.4%, far exceeding the average imports growth rate in the same period.
Over the past 10 years, Brics countries have maintained close co-ordination in the UN, G20 and other major multilateral forums. Working together, Brics countries have effectively upheld the leading role of the UN and the authority of international law in international affairs. In the face of hotspot issues and global challenges such as terrorism and climate change, Brics countries have contributed “Brics wisdom” and “Brics solutions”, protecting and ensuring the common interests of all developing countries.
Brics countries have transcended the old pattern of political and military alliance and established new relations of partnership instead of alliances. Brics countries have surpassed the old notion of drawing lines according to ideology and taken a new path of mutual respect and common progress.
Over the past 10 years, Brics co-operation was driven forward by three wheels – political mutual trust, economic mutual benefit as well as people-to-people exchange and cultural mutual learning – and has achieved tangible progress in these fields.
The New Development Bank (NDB) founded by Brics is up and running and is estimated to have a total loan book of about $8 billion (R103bn) for about 35 projects by the end of next year. The $100bn Brics Contingency Reserve Fund is already in place and stands ready to support Brics members in case of liquidity pressure. During the 7th Brics Trade Ministers’ Meeting in Shanghai last month, Brics reached important consensus on expanding trade in services and e-commerce co-operation, and adopted the Outlines for Brics Investment Facilitation, the first special document approved in the field of global investment facilitation.
South Africa joined the Brics in 2010. Since then, Brics has associated itself with Africa, the continent with the largest number of developing countries. With South Africa, Brics has become more representative geographically and more complete in its substance, and has gained more extensive social basis and stronger support among the public. South Africa has made a positive and important contribution to the unity, co-operation and institutional development of Brics. And today South Africa stands as an important bridge connecting Brics and Africa in development co-operation.
Through responding actively to Africa’s aspirations for addressing climate change, realising sustainable development and combating terrorism, Brics countries have united strongly to uphold our common interests. At the G20 Hangzhou summit last year, together with South Africa and other Brics countries, China came forward with the Action Plan on the 2030 Agenda for Sustainable Development. It was the first time the G20 adopted collective action to support the industrialisation of Africa and the least developed countries.
During the recently concluded G20 Hamburg summit, Brics again called on the G20 to follow the consensus of the Hangzhou summit with regard to the improvement of peace and development in Africa. On August 17, during the official launch of the Africa Regional Centre of the NDB in Joburg, the bank announced it would approve a $1.5bn loan to South Africa in 18 months.
As the first regional centre of the NDB, its launch will inject momentum into the development of South Africa and the rest of Africa. Moving forward, Brics co-operation will surely make a greater contribution to the development of South Africa and Africa, and will help activate even more international co-operation with Africa, creating more opportunities for Africa to realise independent sustainable development.
The establishment and development of Brics co-operation conforms to the trend of the times, and is an inevitable result of the modernisation of the global governance regime.
Admittedly, every Brics country has its own development challenges as well as pursuit of interest. In some cases, there are even differences and conflicts. But these are normal situations among countries. What Brics co-operation upholds is the idea of planning together, building together and sharing together. What Brics co-operation calls for is equal partnership. And what Brics co-operation pursues is mutual benefit, win-win progress, and common development. Brics co-operation will always benefit from its strong complementary nature and huge potential, and will always serve the interests of the five Brics member states and their peoples.
As long as we uphold the Brics spirit of openness, inclusiveness, co-operation and win-win, the future of Brics co-operation will definitely be closer and more productive. During the upcoming Brics Xiamen summit, under the theme of “Brics: Stronger Partnership for a Brighter Future”, Brics leaders will have in-depth exchanges on ways to deepen practical co-operation, enhance global governance, expand people-topeople exchanges and promote Brics institutional improvements.
As South Africa celebrates the 100th anniversary of the world-renowned leader OR Tambo, Brics co-operation could also draw inspiration and wisdom from the spirit of the great leader. We strongly believe that as we strengthen unity and commit ourselves to mutually beneficial co-operation, Brics co-operation will take up renewed vigour and vitality and embrace another “Golden Decade”.
Going forward, the Brics will shine even more brightly to inspire and lead developing countries towards stronger unity and greater prosperity. Songtian is China's ambassador to South Africa